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Where the shared resources are limited to common audit methodology or audit manuals, with no exchange of personnel or client or market information, it is unlikely that the shared resources would be considered to be significant. The same applies to a common training endeavor. Where, however, the shared resources involve the exchange of people or information, such as where staff are drawn from a shared pool, or a common technical department is created within the larger structure to provide participating firms with technical advice that the firms are required to follow, a reasonable and informed third party is more likely to conclude that the shared resources are
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Those subject to the regulations of other authoritative bodies, such as the US Securities and Exchange Commission, may wish to consult with them for their positions on these matters. Interpretation 2003-01 The Provision of Non-Assurance Services to Assurance Clients The Code of Ethics for Professional Accountants addresses the issue of the provision of non assurance services to assurance clients in paragraphs 290.158−290.205 inclusive. The Code does not currently include any transitional provisions relating to the requirements set out in these paragraphs however the Ethics Committee 5 has concluded that it is appropriate to allow a transitional period of one year, during which existing contracts to provide non assurance services for assurance clients may be completed if additional safeguards are put in place to reduce any threat to independence to an insignificant level. This transitional period commences on December 31, 2004 (or from the date of implementation of the Code for members of those IFAC member bodies which have adopted an earlier implementation date). Interpretation 2003-02 Lead Engagement Partner Rotation for Audit Clients that are Listed Entities The Code of Ethics for Professional Accountants addresses the issue of engagement partner rotation for financial statement audit clients that are listed entities in paragraphs 290.154−290.157. The paragraphs state that in the financial statement audit of a listed entity the engagement partner should be rotated after serving in that capacity for a pre-defined period, normally no more than seven years. They also state that some degree of flexibility in timing of rotation may be necessary in certain circumstances. The Ethics Committee6 believes that the implementation (or early adoption) of the Code constitutes an example of a circumstance in which
Those subject to the regulations of other authoritative bodies, such as the US Securities and Exchange Commission, may wish to consult with them for their positions on these matters. Interpretation 2003-01 The Provision of Non-Assurance Services to Assurance Clients The Code of Ethics for Professional Accountants addresses the issue of the provision of non assurance services to assurance clients in paragraphs 290.158−290.205 inclusive. The Code does not currently include any transitional provisions relating to the requirements set out in these paragraphs however the Ethics Committee 5 has concluded that it is appropriate to allow a transitional period of one year, during which existing contracts to provide non assurance services for assurance clients may be completed if additional safeguards are put in place to reduce any threat to independence to an insignificant level. This transitional period commences on December 31, 2004 (or from the date of implementation of the Code for members of those IFAC member bodies which have adopted an earlier implementation date). Interpretation 2003-02 Lead Engagement Partner Rotation for Audit Clients that are Listed Entities The Code of Ethics for Professional Accountants addresses the issue of engagement partner rotation for financial statement audit clients that are listed entities in paragraphs 290.154−290.157. The paragraphs state that in the financial statement audit of a listed entity the engagement partner should be rotated after serving in that capacity for a pre-defined period, normally no more than seven years. They also state that some degree of flexibility in timing of rotation may be necessary in certain circumstances. The Ethics Committee6 believes that the implementation (or early adoption) of the Code constitutes an example of a circumstance in which